Can I file bankruptcy on court ordered restitution?

UPDATED: Nov 6, 2013

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Can I file bankruptcy on court ordered restitution?

About 10 years ago while under the influence of methamphetamines I embezzled $198K from the nursing home I was employed at. I was given deferred probation for a 10 year time period and was ordered to pay restitution. The insurance company that bonded the nursing home has since placed a judgement against me for the $198K. I have been drug free since the incident and I am raising 3 girls on my own. I will never be able to repay that amount. In an effort to move on with life, is there anyway to make the judgement go away by filing bankruptcy I filed bankruptcy about a decade ago during my first marriage. Can anyone give me my options?

Asked on November 6, 2013 under Bankruptcy Law, Oklahoma


Terence Fenelon / Law Offices of Terence Fenelon

Answered 9 years ago | Contributor

Unfortunately, you have few options other than enter into a repayment plan on terms which you may be able to afford.

As a result of the judgment. assuming it alleged the embezzelment, the debt is likely non-dischargeable under the bankruptcy code pursuant to 11 USC 523 (a)(4) which excepts from discharge debts incurred by embezzelment.  Your state of mind at the time is irrelevant, as is your current status.

Additionally, if the terms of your probation dictated that you make restitution, the failure to comply could result in an unsatisfactory report upon the conclusion of the term of probation and possible resentencing and possible jail tim.  A judge may take into consideration a good faith attempt to make good on the deal, especially considering your rehabilitation.  The debt, I'm afraid, is lilely to remain.

The only option you may have is a chapter 13.  I would adise you to seek local legal counsel experienced in Bankruptcy law.  I wish you luck in the future.


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